North Carolina
North Carolina legislature passes insurance bill allowing Blue Cross to reorganize
RALEIGH, N.C. (AP) — The North Carolina legislature gave final approval Tuesday to a bill allowing the state’s leading health insurance provider to restructure despite criticisms from the state insurance commissioner that it would erode his regulatory authority and undermine his ability to protect consumers.
The measure, which permits Blue Cross and Blue Shield of North Carolina and a dental insurance provider to transfer assets into a parent holding company, cleared the Senate 41-5 Tuesday after passing the House with similar bipartisan support earlier this year.
Shepherded through the legislature by Republicans and one top Democrat, the bill now heads to the desk of Democratic Gov. Roy Cooper, who will review the legislation, a spokesperson said.
If Cooper signs the bill or lets it become law without his signature, Blue Cross and Delta Dental will be able to move money, property and other investments from their existing hospital service companies to new shell companies run by the same executive leadership. They could, for example, use those assets to purchase other companies and expand their services.
The changes would take effect as soon as it becomes law.
“At the present time, Blue Cross is operating at a disadvantage in the market,” Senate leader Phil Berger said Tuesday after the vote. “And the main reason I’m supportive of the bill is because I think it helps level the playing field and allows them to compete on an even plane with other health care insurance providers.”
While Blue Cross, a fully taxed nonprofit, says the reorganization would give it more flexibility to behave like its for-profit competitors, state Insurance Commissioner Mike Causey argues his department would not have ample oversight to make sure the holding company acts in the best interest of consumers.
The bill includes provisions requiring the holding company to invest in entities that promote affordability or “contribute to the health needs of North Carolina residents.” It also caps the amount of “admitted assets” the insurer can transfer to the holding company at 25%.
The holding company also would have to file annual audited financial statements with Causey’s office, disclose compensation for its highest-paid executives and reveal its “strategic investment activities.”
But Causey, a Republican, said the bill gives Blue Cross “tremendous leeway” to use money that he said belongs to North Carolina ratepayers for its own self-interest.
“I have no ability to hold them accountable on what they do with the holding company once that money is taken out of Blue Cross the insurance company,” Causey told The Associated Press after the vote. “We can only hope that the consumers will not be harmed.”
Before the vote, Sen. Todd Johnson, a Union County Republican and bill sponsor, assured fellow senators that the bill included “90% of what the commissioner of insurance was asking for.”
But Causey told the AP later Tuesday, “It’s maybe closer to 10%, but very little.”
Blue Cross spokesperson Sara Lang applauded the legislature for passing a bipartisan bill that she said would “help improve health care access” and “build on our state’s strong business climate.”
___
Hannah Schoenbaum is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.
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North Carolina
Obituary for Kristie Lee Sturgill Blake at Market Street Chapel
North Carolina
NBA Draft Scouting Report: Texas’ Tre Johnson
![NBA Draft Scouting Report: Texas’ Tre Johnson NBA Draft Scouting Report: Texas’ Tre Johnson](https://images2.minutemediacdn.com/image/upload/c_crop,w_2209,h_1242,x_1298,y_403/c_fill,w_1440,ar_16:9,f_auto,q_auto,g_auto/images/ImagnImages/mmsport/nba_draft/01j462h25vxrtranzx37.jpg)
Drake Powell
Guard | UNC
Height: 6’5” | Weight: 185 lbs
2025 Draft Age: 19.78
As a natural wing or off-ball guard, Powell has what it takes to be an impact player at the next level. He boasts the positional size and athleticism to exploit his opponents on either end of the floor. Overall, he’s a very smart player with a competitive edge and is willing to adapt to what his team needs to win.
Powell is really best as an off-ball player offensively, especially given he’s not known for being a self-creator or primary ball-handler. However, he is a smart cutter and has found ways to position himself for success when finding space. To really take his game overall to the next level, the North Carolina freshman will need to prove he can become a better shooter. Whether it’s in the mid-range or beyond the arc, his jumper is inconsistent. Again, as an offensive prospect, he needs to improve to really become a two-way threat. The physical traits are there for him to get where he needs to be, but the development of his offensive game is a huge swing for Powell in terms of draft stock.
On the defensive end of the floor, Powell really shines. His athletic tools allow him to be all over the place and make plays on and off of the ball. He is quick, boasts length and is very smart as a defender. When thinking about what will differentiate him from other prospects at the next level, it will be his upside as a defensive prospect. He plays with tremendous energy and effort and he makes those around him better on the defensive side of the ball. In fact, he is one of the best defenders in the entire freshman class.
If Powell can convince NBA teams that he has the future projection of being a better offensive player, there’s no question he could be one of the most impactful players in the draft. In the meantime, he can lean on his defensive abilities to contribute to winning. The former five-star recruit is following in the footsteps of his father as a Tar Heel, as he played baseball for North Carolina when he was in school.
Mid to Late Lottery Pick in 2025 NBA Draft.
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North Carolina
WATCH: Steamy and Stormy in North Carolina on Friday, Heat Advisory in the eastern Triad
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